Trade Tensions Weigh on European Markets

European markets experienced a significant downturn on Monday, with trade tensions and concerns over sector-wide impacts taking center stage. The European Commissioner for Trade and Economic Security, Maros Sefcovic, confirmed that the EU's first countermeasures to United States tariffs will be implemented on April 15, marking a sharp escalation in the transatlantic trade dispute.

Fitch Ratings Issues Warning

Adding to the market's woes, Fitch Ratings warned that the impending tariffs could adversely affect a broad spectrum of European corporate sectors, including automotive, industrials, and consumer goods, further dampening investor sentiment.

Market Performance

The DAX fell by 4.37%, the Eurostoxx 50 by 4.41%, and the CAC 40 by 4.70%, with Airbus leading the decline, dropping 8.25%. The FTSE 100 wasn't spared, plummeting 4.69%, largely due to a 7.86% drop in Melrose Industries.

Currency Impact

The euro and pound sterling also felt the pressure, with the euro decreasing by 0.52% against the dollar to 1.09071, and the pound sterling losing 1.36% to 1.27290 by 5:31 pm CET.